Latest on Seattle and national home prices...

One of the more prominent indexes that track home prices across the U.S. released their latest report this morning. Standard and Poor's/Case Schiller 20 city index fell by a record 18% from October of 2007 to October of 2008. Their 10 city index fell 19.1%. While it might not make us feel better, Seattle real estate continues to weather the storm well.

On a semi-bright note, Seattle only fell 10.2% year over year in October. This was the first double digit loss for our city since the inception of the index in 2000. Of course, October was one of the worst months in history for U.S. stock markets and President Bush was forced to sign a $700 billion bailout plan to help ease the global financial panic. Since then, the Federal Reserve has slashed interest rates and helped drive down mortgage rates to historic lows.

Many people lost significant sums of money in their investment portfolios during the huge market declines in October. In some cases, it only took a week to lose 40-50% of a persons nest egg. That makes 10% loss in home value look benign. As a Seattle real estate agent, I admit I am biased. But using real estate as an investment vehicle is a wise and proven method. Not to mention, it's not as volatile as the stock market can be.

Read the full article here.

FHA rehab loans

For those of you who are unfamiliar with Federal Housing Administration (FHA) financing...I highly suggest you peruse this Seattle PI article. Especially if you or someone you know is considering buying a home in the Seattle area. Once upon a time FHA loans were reserved for low income home buyers or those with poor credit. The last several years, the program fell out of favor more trendier loan programs (the infamous subprime loans). This past year, Washington has seen a major increase in loans through the traditional FHA program as well as their rehab loan program.

In a very basic sense, the FHA rehab loan provides up to $35k in additional funds to fix or rehab the purchased home. As we've seen a slight increase in foreclosed homes and homes remaining vacant for a year or more...these rehab funds are great! FHA loans are very good option for first-time home buyers in Seattle and King County.

Read the full article here.

Seattle Real Estate 2009 Outlook

I saw this article over my time off over Christmas. It's an article from the Seattle Times regarding the upcoming year in regards to the Seattle real estate market. Everywhere you turn, another source's cyrstal ball seems to say something different about where Seattle's housing market is headed. Bottom line is nobody knows with any certainty.

The only thing we know for certain is that Seattle home prices are down to where they were 2-3 years ago. While this isn't great for more recent buyers, it's not the end of the world. Not to mention people who have owned for 1o years or more are still sitting on a fat pile of equity. In addition to more affordable prices, interest rates are at historical lows.

While this article is an interesting read...please take from it that the future looks rosier than last year but we're not out of the woods quite yet. The old saying, "Buy low, sell high." is repeated more often than it is followed. Now is a low point for Seattle housing and low interest rates make it that much more prime to buy now.

Read the full article here.

Forbes calls Seattle best housing bet!

I mentioned this in a previous post but feel it is worth highlighting again. Forbes.com has pegged Seattle as the #1 city to target for long-term real estate purchases going forward. Seattle is at the top of their list of cities that are least likely to overheat and bust in addition to having the most prospering economies going forward.

Here's what they had to say in regards to Seattle:

What lands it in the first position on this list is the combination of strong job growth with a building cycle that hasn't run in high excess of demand and, in part, its constrained geography. Especially compared to cities on the West Coast, Seattle has historically not overheated in boom times.

There's just less room to grow and few laws that make it easy to do so. In these markets, building activity doesn't rise as hastily during national booms, and, as a result, doesn't crash as dramatically during slowdowns (based on historical volatility and current market conditions).

While this doesn't necessarily ease the pain of current declines in home values, it should be one more piece of evidence that buying real estate in Seattle has been and will continue to be an extremely solid long-term investment. Now, more than ever, prices in Seattle have become extremely affordable compared to recent years. This is a correction from the minor inflation of value over the last ten years. First-time home buyers who now see their first in-city home as attainable will be the heroes of this current market. As they start to snap up their first home, this will release current sellers and allow them to move up as they have been wanting...thus creating a chain reaction. Hopefully positive media attention to Seattle, such as this Forbes article, will encourage home buyers to get into the game!


Read the full article here.

1st time home buyer heaven...

As a real estate agent, I get extremely frustrated with our local and national media when they refuse to cover the positives of our current real estate market. Seattle is weathering this unpleasant storm extremely well and has all the fundamentals for an eventual rebound. Seattle recently made Forbes magazine as one of the most likely cities to rebound first.

That being said, my friends at the Seattle Times recently published a great article on the possibilities for first-time home buyers. People who qualify to buy a house for the first time are in a position they might not see for another 10 years. Furthermore, once they start buying, this will allow current sellers to move on and move up. This in effect will help lead our area out of a slow housing market. So let's all cheer on those first-time home buyers!

Read the full article here.

Numbers to Know...

Here's a brief look at important statistics and numbers surrounding Seattle real estate.

This graph shows how many months of inventory exist on the market in Seattle. In other words, if no new listings were to come on the market then it would currently take 10.8 months to deplete what is now for sale. Eleven months is a long time and demonstrates how slow the market is moving right now in Seattle. However, as you'll see in the next graph...it's due more to the rate people are buying and much less with an inflated number of active listings.

Sales really dropped off in November while pending sales (signed contracts set to close in the future) had a slight increase. This trend seems to follow the general pattern of all consumers right now. People seem to be holding off on purchasing items (and houses!) that aren't necessary. Again, active listings dropped significantly last month. You can see from recent history that inventory tends to drop in the dark winter months but the reduction of homes for sale will be one step on the path to a rebounding market.
We always hear in the news about prices dropping and home values on the decline. This give a visual to the factual reality of how prices are performing on a $/square foot basis. While certain outlying areas have seen significant declines, the city of Seattle really hasn't posted major declines in the prices of real estate. There is no question values have softened but many think the drop should be viewed as a slight correction to formerly inflated prices.

What your money can buy in Seattle

This was a revealing article printed last weekend in the Seattle Times. It breaks down what kind of home different amounts of money will buy in the Seattle area. A person looking to spend $250k can easily find a 1 bedroom condo in the popular neighborhoods north of Lake Union. And then a substantial, yet reasonable increase to mid-$300k can buy a single family home or townhome in the same area.

Prices have really softened this fall and early winter. That combined with incredible interest rates on a home mortgage make buying in Seattle extremely compelling.

Read the full article here.

Residential Architecture Snapshot: Cape Cod

Cape Cod style homes were one of the first styles built in the United States. Original Cape Cods built by the colonialists were one-story, sided with shingles and did not have dormers. As the style became more popular in urban developments during the mid-20th century, the houses retained their original style with only a few embellishments. A more contemporary Cape Cod is square or rectangle with one or one-and-a-half stories. The roof is gabled, steeply pitched and may have dormers. I realize I've used some obscure architectural terms in this post...so here are a couple definitions important to residential architecture:

Gable: A gabled roof line describes the upside down "V" shape to the ends of some houses. A basic house might be a square shape with two gabled roof lines. Where as more complex designs can have several roof lines. Here is a picture of a cross-gabled roof:

Dormer: Dormers are windows that jut out from the roof of a home, and have a roof of their own. The word comes from the Latin dormitorium meaning "sleeping room," because dormers often bring space and light to bedrooms. For decorating purposes, a dormer creates a cozy spot for a reading chair or a desk.

Lending, lending, lending...

Here's an interesting piece from the Seattle PI on how lenders are working hard to get financing approved for potential borrowers.

Enjoy.

Read the full article here.

Numbers you should know...

Here are the recent sales numbers for single-family homes in the city of Seattle. Only 26% of the available homes sold or went under contract in the month of October. A more balanced market would see that number grow to 50%. One encouraging number to notice is the decrease in available listings. This amount will hopefully continue to drop as buyers eat up the current inventory and sellers hold off on listing their homes during the holidays.

Click on the chart to see a larger view!

Residential Architecture Snapshot: The Tudor

With so many differing styles of residential architecture out there, I will periodically feature styles commonly seen in Seattle. Most styles are not native to this area. As people moved west, they brought their building knowledge and appetite for home styles from their hometowns.

The Tudor:

This architecture style was popular in the 1920s and 1930s and continues to be a mainstay in suburbs across the United States. The defining characteristics are half-timbering on bay windows and upper floors, and facades that are dominated by one or more steeply pitched cross gables. Patterned brick or stone walls are common, as are rounded doorways, multi-paned casement windows, small porches. Tudors are highly desired in the Seattle area, however their floor plans often prove to be impractical. The steep pitched rooves and relatively small footprint (in Seattle neighborhoods) don't allow for much room inside. But people fall in love with their curb appeal and usually fork out the money to live in them. Seattle tudors are often all brick and have a little bend near the bottom of the roofline.

Google releases Street View for Seattle!

This is a super cool feature new to Google Maps in the Seattle area. Google offered Street View for other cities and just added Seattle, D.C. and Baltimore to the list. As you look at a map, viewers have always been able to select from a street map, terrain map, satellite image or some combination of those. Now, when a map viewer clicks on "street view," an image box pops up that shows what it looks like to stand on the street in that particular location.

This is a very useful feature for home shoppers as they can see how certain properties look in a more realistic fashion than before. From what I've heard, Google sent vehicles around town with cameras attached and filming all the way. I haven't yet found a location that they didn't capture, which continues to amaze me. Have fun playing around with it.

Check it out!

Downtown Condo Q&A

While this feature in the Seattle Times may be old news for some of you, I finally got around to reading through it this morning. I feel the questions asked and answers provided cover what the average person might be wondering as it relates to Seattle condos. Dean Jones, CEO of condo-research and -marketing firm Realogics, fielded questions online on October 8th. Seattle-based Realogics is a real estate consulting firm specializing in market research, product development, marketing and sales solutions for in-city condominiums and mixed-use properties.

Happy reading and Happy Halloween!

Read the Condo Q&A here.

Seattle real estate pegged as a hot market

There have been recent articles anointing Seattle as a hot market for both commercial and residential real estate. The Seattle PI ran a story that sited outside research and named Seattle as the #1 market for commercial real estate in 2009. Another article in Smart Money magazine listed Seattle in the top 25 markets poised for a quick rebound in 2009.

The reasoning behind these reports are things many of us have been saying for a long time now. Seattle's physical boundaries are limited on most sides by water and this has prevented extreme over development seen in other areas like Arizona. Our job picture remains very positive as mega-employers like Microsoft, Boeing and Amazon.com remain relatively strong. Job growth dropped again recently and more people continue to move to the area in greater numbers than they leave. Watch for the massive development in South Lake Union to add to the desire for housing in both downtown as well as the neighborhoods north of the lake: Queen Anne, Wallingford, Ballard, Green Lake and Fremont. 2009 looks great for Seattle, so take advantage of the soft prices while they last!

Here are the articles I mentioned:

Seattle in top 25 for residential real estate! (This is an abbreviated version published by Yahoo!)

Seattle is #1 commercial real estate market for 2009!

September pending sales increase!

Pending sales in September have increased 8.8% from a year ago and 1.8% from August. Below is an article that discusses this increase and what it might forecast for the market's future. Some feel it is due to approval for financing taking longer for buyers. Others feel it is a small sign of market stabilization. Since the market really slowed down in September of 2007, the 8.8% increase of pending sales one year later may indicate more sales to come.

Read the article discussing these numbers here.

Great Condo in Sand Point!

Very stylish condo in Sand Point neighborhood. Close to Magnuson Park, Children's Hospital and the University of Washington! Crown molding, granite and stainless steel make this unique home glisten. For more information, click here.

Finally...some good news!

This is a recent article from the Seattle PI written by Aubrey Cohen. He discusses recently released statistics from September that show a stabilization in the Seattle housing market. The article states,

Pending sales of houses and condominiums in Seattle increased 8.8 percent from a year earlier and 1.8 percent from August, while sales countywide went up 4.2% from September 2007 and declined 0.8 percent from August, according to
the Northwest Multiple Listing Service.

This is welcome news for us here in Seattle and perhaps the first signs that the bottom everyone is waiting for is arriving shortly. Granted, this is only a small improvement for one month but when the Seattle market turns the corner...I promise you it will happen quickly!

Read the full article here.

More numbers to know...

This graph shows the current inventory of single family homes on the market in Seattle. According to the August numbers, it would take 6.4 months to deplete the current number of homes for sale.

Numbers you should know...

The above graph shows the number of homes that sold or went pending for the last year in the city of Seattle. This gives you an idea of how much inventory moves in a given month. For numbers more specific to your area, contact me here.

What's the big deal with Fannie and Freddie?

By now you've likely heard that the government is assuming control over Fannie Mae and Freddie Mac. Most people are not aware what those two companies are and why this headline is important.

Fannie Mae and Freddie Mac are the two largest companies that buy mortgages on what's called the secondary mortgage market. So when you buy a home, the company that initially lends you money will eventually package your mortgage along with several others and sell it off. Fannie and Freddie gobble those up like no other. Problem is...they acquired several bad loans over the years in addition to making some other questionable investments.

Instead of letting the companies fend for themselves and potentially go under, the U.S. government is essentially bailing them out.

Here's a quick Q & A from the Seattle Times that answers some common questions.

Read the full article here.

Price cuts are better when they're big!

You often hear that the current real estate market is a "buyers' market." This essentially means that a high number of homes for sale creates a competition that gives buyers an advantage. Sellers have to have a home that attracts the largest pool of buyers from the very first day on the market. If a home sits for a while with no offers made on it, then sellers and their agents often reduce the price.

This is a good article that discusses strategy when reducing a listing price. The point of reducing price is to make a splash. So the article correctly suggests that reducing in large amounts is far better than taking baby steps down.

Read the full article here.

Tax credit for new homebuyers...

The Housing and Economic Recovery Act of 2008 was a part of recent legislation passed with the intention of easing the economic woes of Americans. Part of that legislation is a tax credit for first-time homebuyers. Please consult with a tax professional prior to applying for this credit.

Highlights of the tax credit:

• Amount of Credit: 10% of home, not to exceed $7500


• First-time homebuyer only: Purchaser and purchaser's spouse may not have owned a principal residence within the past 3 years.


• Effective date: purchases on or after April 9th, 2008


• When to apply?: Available when filing 2008 or 2009 taxes


• Income Limit: Full amount available for individuals with AGI of no more than $75k or $150k for a joint return.


• Refundable: Yes. This credit reduces income tax liability for the year of purchase. Claimed on tax return for that tax year.

THE CATCH!: The credit must be paid back at the rate of $500 per year. If the house sells at a loss before the balance is paid off, then the balance is forgiven. If the house sells for a profit, the balance is paid off through those proceeds. In short, this acts as a 0% interest loan from the government.

Thinking of a remodel?

A recent Seattle Times article discusses different remodeling projects for a variety of budgets. There are several ways to add value to your home even if you don't have much money to allocate to the project.

If you would like more statistics on how certain remodeling projects tend to return value here in the pacific northwest, I can send you a pdf that breaks those numbers down. Feel free to email me for that information!

Read the full article here.

New measure aims to aid housing slump...

This article appeared in the Sunday edition of The Seattle Times. It does a fairly good job of outlining the implications of this new bill. I'm still trying to get my head around what the results will actually be...but here are some of the things the bill attempts to accomplish:

• Allows certain homeowners to refinance their bad adjustable rate loans.
• Offers a lifeline to Fannie Mae and Freddie Mac who appear to be struggling and also exerts more control over those two "pseudo-government" agencies.
• Provides $3.9 billion to neighborhoods where foreclosures are prominent. The money is to buy and fix up properties in those neighborhoods as a means to increase surrounding property values.

It's that last point that I have not figured out yet. I have not read how that plan will be executed and by whom.

Read the full article here.

New Luxury Apartments in Wallingford

Anyone looking for an apartment in Seattle that is frustrated by the lack of quality accommodations should check out the brand new building in Wallingford. It's called Howard Park and can be found at 4218 Stone Way N. Seattle, WA 98103.

The building is currently accepting leases online to begin September 1st.

The interiors are finished with hardwood floors, granite counter tops, stainless steel appliances and cherry cabinets. The roof provides a controlled access deck for tenants complete with gas bbq and hosting kitchen.

The water in the building operates on a "tankless" system that is heated through solar assistance. A solar collector on the roof aids in the heating of the tenants water--providing an environmentally friendly and cost effective system.

For more information, visit their website at: http://www.seattleapartments.biz/howardpark/

Trying to differentiate a listing...

The Seattle PI has a fun article on agents and sellers trying to appeal to all aspects of potential buyers. One popular tactic is to provide a tasty treat for buyers that are coming through to view the house. Not only does it create a more welcoming atmosphere but it also causes buyers and agents to linger a bit longer than usual in the house.


I'm curious to know if this makes a difference to any prospective buyers out there. Vote in the poll in the right-hand column to share your opinion!

New town home guidelines

Seattle mayor Greg Nickles called for mandatory design review for all new townhomes built in the city. This new process would provide more checks and balances in regards to the design of townhomes and other small multi-family developments. According to the Seattle Times,

The changes also would offer builders more flexibility in building
configuration, parking and open space. In some areas, structures could be
closer to the street. But some neighborhood groups believe the proposed changes could yield disastrous results: bigger, bulkier buildings, smaller yards and less open
space on the ground level.

It sounds like the proposal has good intentions as many townhomes built in Seattle are unattractive and do not fit in with their surrounding neighborhoods. Seattle is continuing to change their laws and zoning regulations as it attempts to accommodate the foreseen lack of housing in the city's future.

Read the full article here.

How will gas prices affect homebuying?

With the nearly unbearable increases of gas prices, many people are rethinking their driving habits. And with no long-term relief in sight, drivers are even reconsidering how they can limit their commutes to work. This article from the Seattle Times discusses how some people are now choosing where they live to limit the amount of gas they use to get to work.

I'm interested to know how many of you would choose your next residence based on how much gas commuting from that location. Reply to this post and let me know!

Read the full article here.

Affordable Housing Tax Break

Mayor Greg Nickles and the city council approved the expansion of a tax break for builders and developers that build affordable apartment or condo buildings in the city of Seattle. One potential issue is how the city defines "affordable."

Under the approved proposal, an affordable studio apartment in the city has a price cap of $1,115. They say this is affordable to a single person making $46,705, or 80% of the area's median income. Nick Licata, the lone dissenting vote, argues that many workers that live in the city make even less than the people the new tax break aims to help.

Read the full article here.

End of a Legacy?

Demolition began on the old Denny's building in Ballard. I blogged about this a while back and just wanted to give an update. This building was an example of the rare yet odd architectural style called "Googie." A preservation group made attempts to save the building, but keeping it around was not practical.

Read the full article here.

Seattle housing growth is through the roof!

A recent report reveals that 3 years into Seattle's 20 year plan to increase housing, the city is already halfway to their target! The city has a plan to help stop urban sprawl and accommodate more people within the city limits. The Seattle Times reports,

Between January 2005 and March 2008, Seattle experienced a net gain of more
than 10,600 housing units, with an additional 13,000 or so in progress. That's
50 percent of the city's 2024 target of 47,000 additional units.

Many opponents of rapid growth will point to these numbers and say it will lead to a decreased quality of life in Seattle. They will also use this report as evidence that a recently proposed tax incentive to build multi-unit properties should not be passed.

Read the full article here.

More on FHA...

The new loan limits for FHA (Federal Housing Administration) are starting to help some buyers. In addition, the FHA backed loans are gaining more and more market acceptance.

Read the full article here.

Tax Assessments

This is an interesting piece from the Seattle PI explaining why the tax assessed value of your home might go up even as your property value may have declined.

Read the full article here.

New Listing!

This is a very charming house in Queen Anne with a very large back yard. It's rare to find a house with this type of yard in Queen Anne. The house also has been recently updated and includes a covered side patio; separate shop area and a downstairs apartment.

Check out more information here.

May Sales Stats...

Click here to view numbers for home sales in the month of May. Then click on the link to view the PDF. As anticipated, sales are down overall from a year ago.

Great time to buy as prices slide...

This article from the Seattle PI outlines the general feelings from both buyers and sellers in this market. A lot of buyers are waiting for the "perfect" house or for an incredible deal. Many real estate professionals have their views on what will change in the near future to turn all of those fence-sitters into actual buyers...thus causing the market to move faster than it is now.

Read the full article here.

Foreclosures continue to rise

While the story of rising foreclosures is not new, the growing number of homeowners falling behind in their payments is not going away. As we here in the northwest seem to trend 12-18 months behind the rest of the country in most everything, the increasing foreclosure rate in Washington is becoming more prevalent by the month. In fact state legislature has approved new laws to protect "Distressed Homeowners" that are to go into effect June 12th. I will blog more on this and it's impact on the real estate market soon.

Read the full article here.

Tough time to refinance...

This is a great article from The Seattle Times on some homeowners that are having difficulty refinancing under new restrictions from the mortgage industry. Many people bought homes in the last few years under one type of lending rules and now have to deal with a new set of rules. Since lenders are more strict about who they lend money to right now, some looking to refinance are suffering the consequences.

Read the full article here.

Cheap option for renters...

A new and generally untested product will be coming to Seattle neighborhoods soon. A company called Unico Properties is marketing a pre-fabricated structure that investors can buy to create a cheap apartment complex. The main portions of the building are built in a warehouse and then erected at the site where the apartments are to stand.

By untested, I mean that whether or not renters will want to live in them is still unknown. But they look modern and the price per square foot will be enticing for lower income earners. A project is slated for Dexter Avenue North.

Read the full article here.

Seattle Housing Inventory

Here is a simple chart provided by Trendgraphix, Inc. that shows the current inventory for homes in the Seattle metro area. In other words, if no other home came onto the market starting now...it would take 6.2 months to sell all of the homes currently for sale. Compare that to the frenzy of a year ago! This means more competition for sellers and more choices for buyers.

Ballard Denny's set for development...

The former Denny's in Ballard has been the center of a recent debate. Tear down the old structure or preserve it as a historic landmark? While it might not look like much to the casual observer, the old building with a swooping roof line is an example of "Googie" architecture. The Landmarks Preservation Board managed to designate the building as a city landmark back in February. However, a recent recommendation from the city will likely pave the way for developers to demolish the existing structure in order to build an 8-story mixed use property.

Read the full article here.

FHA loans are becoming all the rage...

With the recent downturn in the lending market, many potential borrowers find themselves in a weak position to acquire a loan for a house. Lenders are nervous to lend money to people that statistically show a higher chance of defaulting on the loan. Enter: the FHA loan. While FHA loans fell out of favor during the past boom, they are now becoming more and more popular because backing from the Federal Housing Administration protects lenders from loss.

So if you are in the market for a house but have a dinged credit history or do not have 20% to put down...ask your lender about FHA.

Read the full article here.

Sales outlook for 30 cities...

This Yahoo article takes a look at the projected sales for thirty major U.S. cities. See how Seattle stacks up to the rest!

Read the full article here.

Green ownership

The current turmoil in the real estate world has created an opportunity for conservationists to go even greener. With land values dropping, land trusts have seized the opportunity to acquire land that was previously slated for development. Since developers are hurting, their projects are being scrapped and paving the way for that land to be purchased for conservation. Dailyrecord.com reports on the story.

Read the full article here.

Skyscrapers in South Lake Union?

A South Lake Union group is considering plans to rezone the area to accommodate 300-400 foot tall buildings. The development in that area has been steady and more is planned for the near future. As more and more companies line up for the opportunity to lease space in SLU, developers will attempt to find ways to fit them. Understandably, neighbors and residents of SLU are not happy about this proposal. The Seattle PI reports on the controversy.

Read the full article here.

Plans to expand U-Village

The University Village mall recently filed papers to dramatically expand their retail, office and parking space. The mall has has slowly grown over time but with an occupancy rate of 99.8%, they have good reason to desire more retail space. Not to mention they are always short on parking!

Read the full article here.

Home Prices Climbing!

April was the third month in a row that home prices have climbed in King County. While prices are still down from a year ago, this upwards movement starting to be a trend. Keep your eye on these monthly reports...it's more evidence that the Seattle area is much healthier than the rest of the country.

Read the full article here.

A condo shortage in Seattle?

Most casual observers would laugh at the idea of a condominium shortage in downtown Seattle. With all of the new construction taking place, the general public often thinks there will soon be a glut of condos for sale with not enough people to buy. Think again. The majority of that new construction is office space. In addition, several condo projects have been placed on hold due to the difficulty of obtaining financing for such projects.


This article from Puget Sound Business Journal discusses how experts foresee a condo shortage by 2010 that will in turn drive up prices.



Read the full article here.

Affordable Housing Plan

The city of Seattle has proposed a tax exemption for developers if they set aside a certain percentage of units in their developments for lower income families. This plan is to encourage lower wage-earners to live in the city versus moving to a cheaper location. All of the details of the proposed plan are in this article from The Ballard News Tribune.

Read the full article here.

Seattle home prices fall 1%

The Puget Sound Business Journal reports that Seattle home prices fell 1% in February and are down 2.7% for the year. While this is movement, it's not the drastic price drops many buyers are waiting for. As I've said before, expect prices in the Seattle area to remain fairly steady. If you are mentally and financially ready to buy a home...don't miss out on a great opportunity for minimal fluctuations in price.

Read the full article here.

Have $2.5 million laying around?

The "Sleepless in Seattle" houseboat on Lake Union is for sale. It can be yours for the mere price of $2,500,000! This home was used in the filming of the famous movie starring Tom Hanks. It is one of the larger homes on the lake and has incredible views from most places in the house. I toured through it yesterday and feel it needs some updating on the interior. I'm very interested to see how fast it sells and for what price.

Read the full article here.

Dog Friendly Parks in Seattle

Okay, dog-lovers! Here is a link to some of the more popular "off-leash" areas in Seattle. I'll add the link to the right-hand column so it's easy to find later on.

Click here to see list of Seattle area dog parks!

National Pulse

This Seattle PI article explores the possibility of a bottom for the housing slump. It has a great explanation for how we got to this point and how the real estate cycle works. Enjoy!

Read the full article here.

Urban Growth Plan

I found this article fascinating! The Puget Sound Regional Council recently updated their plan to steer urban growth to major Puget Sound cities. The plan, called Vision 2040, is designed to slow urban sprawl and concentrate future population growth and, "speed up downtown renewal." According to the article,

The plan would locate one-third of those new residents in the region's five largest cities: Seattle, Bellevue, Everett, Tacoma and Bremerton. Smaller cities would take 41 percent of the growth, and areas outside cities 28 percent.

News like this suggests that property in the city will only grow more scarce and more valuable at the same time. If you're looking for a solid and trustworthy investment, Seattle real estate deserves a hard look.

Read the full article here.

Rent High for Seattle Apartments...

This Seattle PI article discusses the impact of the current housing market on the rental market. Vacancy has crept up a bit this Spring but is still at a historically low level. The average price of rent is at an all time high for the Seattle area.

Read the full article here.

National Market Watch for March

Here's a Seattle Times article reporting on the national market for the month of March.

While the national housing market continues to correct itself from the frenzy of the boom, King County is faring considerably better. Like any commodities market, the real estate market is cyclical. Homeowners and potential buyers should look at this just as if they had shares of stock that were in a down period. If history is our guide, we know eventually the market will begin to rise again.

Read the full article here.

Pricing your Home

This is a list from the Washington Post on tips for pricing your home when selling:

• Don't base the price on what you paid or what your neighbor got a few years ago.
• Do examine the prices of homes for sale in your neighborhood, as well as the prices of comparable homes that have sold in the past three to six months.
• Don't pick an agent simply because he or she suggested the highest list price.
• Do pick an agent who offers a thoughtful explanation for the price he or she is suggesting.
• Don't go overboard with remodeling. Rarely can you recoup the cost.
• Do make minor improvements so your home is in as good as, or better, shape than the competition.
• Don't set your price based on emotional attachments and cherished memories.
• Do ask your agent to reassess the competitive landscape every few weeks to make sure your asking price is in sync with the market.
• Don't be stubborn. If weeks go by without any offers, the price most likely does not reflect the value of the home. It's time to consider cutting the price.
• Do be patient. You might have to wait longer for buyers to pull their money together now that lenders have toughened their standards.
— The Washington Post

Please feel free to contact me if you have any questions or want further advice on prepping your home for sale in today's market.

Growth in Ballard

A Seattle PI article about the changes seen over the years in Ballard. The neighborhood once known for being home to the blue-collar industrial working-class is slowly turning into a hip place to live. Recent developments and new retail shops have transformed Ballard into one of the hottest neighborhoods to live...and many people don't like it!

Read the full article here.

Updates to the Development Code

Here's an article from the West Seattle Herald that discusses some new updates to the city's zoning and development code. The city of Seattle forecasts 100,000 new residents in the next two decades. So one way they are planning on accommodating these future Seattlites is by allowing areas that are currently zoned multi-family to have an additional 5 feet in height of the structure built on the site.

This may not sound like much...but in a city that has no room to sprawl, every inch upward counts!

Read the full article here.

Problems for WaMu

This story will continue to develop and will affect the mortgage and real estate industry to some degree. WaMu is more or less scrapping their residential loan program. No longer will they loan money for mortgage brokers to make loans. It is unclear if a person can walk into a bank and acquire a loan directly from WaMu...though signs point to "no."

The following article from the Seattle Times outlines how WaMu fell and what went wrong.

Read the full article here.

Development in Greenwood

This is an older article that I feel compelled to post. It discusses a new mixed-use development near 85th in the Greenwood neighborhood of Seattle. It's projects like these that raise property values and make neighborhoods more desirable.

If you've considered living in Greenwood, it would be a good idea to buy before the project finishes and the neighborhood gains popularity.

Read the full article here.

Market Update for March

While the Seattle resale market is a bit softer than a year ago (prices down 2.2%), prices held steady from February.

A woman quoted in the article seems to capture the feeling of many prospective buyers. She said, "We're not in a rush, but if something good comes along we're prepared to get it. We're just going to see if something falls in our laps."

Nobody knows how long this current market will last...but it is much more conducive to buyers than the last few years. So if you're on the fence, don't wait so long that you miss your chance at a good buy without too much competition from multiple offers.

Read the full article here.

A Room with a View

For any current or prospective condo dwellers, this article discusses the premium price put on units and properties with a view. Whether it's a view of the city, mountains or water...everyone wants a great view and some are willing to pay for it!

Read the full article here.

A Fee for Grocery Bags?

This story isn't directly real estate related but might possibly affect shoppers within the city limits of Seattle.

City officials announced a proposal yesterday that would charge a $0.20 "green fee" per bag used at any store. That means a shopper must carry a reusable tote whenever they do their shopping or be forced to pay the extra fee.

Whether you live in Seattle or not, I would love to hear opinions on this idea. Is it a reasonable measure to combat extra waste? Or just plain ridiculous?

Read the full article here.

Fannie draws a line at 580

Fannie Mae announced it would now require a credit score of at least 580 for them to acquire a loan on an individual basis. Most of you know the credit score is an indicator of how likely a borrower is to pay back the loan.

Fannie Mae is in the business of buying loans from banks and other lenders. Usually, the loans they buy are in large groups to minimize the risk of default. In other words, it's less risky for them to buy several loans at a time and have one default...rather than buy one and rely on that borrower to pay back. This new credit score limit seems to be in relation to individually purchased loans.

All in all, this could affect some potential borrowers because their mortgage wouldn't be marketable to the largest U.S. home funding company.

Read the full article here.

Live Near Home Plate?

An article from the Seattle PI discussing a new development project for lofts near Quest Field and Safeco Field. This is one of several projects that have their eye on developing the SODO area and making it a more livable area of Seattle. And you wouldn't have to fight traffic in order to catch a Mariners game!

Read the full article here.

Title Insurance Law Suit

This is a fairly big story in the real estate world. Basically, a law suit has been filed against all but one title insurance company in Washington state. The claim states that title insurance companies have in some fashion, agreed not to compete based on rates given to consumers.

A note the article doesn't mention is the value given to the consumer. An insurance policy for a $300,000 property is approximately $864 for the life of the loan. One year’s insurance on a $30,000 car is approximately $1,000-$1,200 depending upon the insurance carrier. It’s evident that title insurance is a great value to the homeowner.

At any rate, this story could affect the buying and selling of real estate...so stay tuned!

Read the full article here.

Any Investors out there?

I found this article very interesting and insightful for anyone that has thought of investing in rental properties. I am involved with managing a medium-sized apartment complex in Wallingford and know that vacancy (for that building) is rare.

According to the author, demand for apartments appears to be continuing for the near future.

Read the full article here.

Helpful Hints for Homeowners...

So far this blog has been a site for real estate related news stories. This trend will likely continue as I hope readers will start coming here for a quick dose of what's going on in Seattle as well as nation-wide.

This article is from the Seattle Times and has helpful ideas for any homeowner.

Read the full article here.

The Good and the Bad...

So here is a story getting play in the local media. Seattle area housing posted its first year to year price decline since 1991. The price of a typical Seattle home is down 1.3% from January of last year. This is not a big drop but it is a drop.

However, homeowners that have owned for a few years are still holding onto significant gains in appreciation...and current buyers may start to see more appealing prices. Key word here is: "may."

At any rate, this will be an interesting trend to follow throughout the spring and summer.

Read full article here.

Urban Sprawl

An article from the Seattle Times discussing the transformation of Seattle neighborhoods as development gets pushed to the outskirts of the city.

The author discusses the Georgetown community and their resistance to change. I'd be interested to hear from people that have been affected by growth and development in the Seattle area. I'm sure there will be a lot of people in South Seattle, for example, that will move elsewhere as the city continues to revitalize that area with sound transit as well as new housing and business opportunities.

Read Seattle Times article here.

Another Good Read...

Trust me, I won't be able to keep up this posting pace for very long...but I have several insightful articles about what's going on in the market right now. This is a Time magazine article that discusses the pros and cons of buying now or waiting for potential price drops later in the year.

The author basically argues that by waiting for further price reductions, buyers might miss out on low mortgage rates. If and when the Fed starts to jack up rates to curtail inflation...any supposed savings in purchase price is lost in a higher rate. A buyer may even lose money over the life of a loan with a higher rate!

This isn't to suggest racing out and buying a house before your ready is a good idea. But if you have money saved and are emotionally ready to invest in your first home or "move up" due to a future addition to the family...now might be the perfect time.

Read the full article here.

Downtown Office Space

An article from the Seattle PI about Seattle office space. While I'm not an expert on the commercial real estate market, I like to have a general sense of what is going on with commercial properties. If job growth is high, businesses need more space...which then trickles down to the need for housing in and around the downtown area.

Read the full article here.

Existing Home Sales Rise in February!

Here is a good article from the National Association of Realtors that discusses how the housing market is beginning to stabilize nationwide. Of course, Seattle has continued to be one of the three strongest markets (Portland, OR and Charlotte, NC are the other two) in terms of positive growth rates for home values.

If you have been thinking about buying a home...now is the perfect time! Just like any other commodities market, real estate moves in a cyclical fashion. Don't miss your opportunity to score a great deal...

Read the full article here.